Memphis, TN residents are demanding city council advance a 12-month moratorium on new data centers, limiting their development in predominantly Black and working-class neighborhoods.
The council approved the moratorium on first reading on August 18. A second reading is scheduled for September 1.
If passed, the ordinance would halt approval of new data centers for 12 months while officials study their effects on the city’s infrastructure, utilities, environment and neighborhoods. It allows developers to seek exemptions, and would not regulate existing facilities or halt their operations.
Council members stressed the moratorium would remain business-friendly. Chairwoman Jana Swearengen-Washington said she was “not anti-business” and that a “moratorium is not a ban.” Councilman Jeff Warren called for a “relatively business-friendly” ordinance and suggested a three-month pause, while Councilwoman Jerri Green said the city should not “pause the innovation” supposedly brought by data centers.
One resident asked the council, “I want to know who’s benefiting from this. We’re not benefiting from it. The communities are not benefiting from it. And so, who’s communicating? And why are they not transparent? What are they hiding?”
While council members and Democratic Party-aligned activists celebrated the moratorium’s approval on August 18, some residents remained cautious. One attendee told The Worker, “there was nothing to celebrate yet. I guess we celebrate steps, small wins, but it’s not really a win until it materializes.”
The push for a moratorium comes after trillionaire Elon Musk’s xAI built massive data centers in Memphis, including Colossus I in Boxtown and Colossus II in Whitehaven. Both predominantly-Black neighborhoods have long histories of industrial pollution.
One Boxtown resident told The Worker that increased water pressure near the data center caused constant faucet flow, higher water bills, and damage to their home.
“I had to pay the plumber $300 to tell me that the water pressure was due to the computer,” the resident said. “He said I have to buy a part for $1,000 to keep the pressure down. A lot of my neighbors are older, how are they supposed to afford that?”
xAI arrived in Memphis in 2024 after the Greater Memphis Chamber announced plans for what it called the “world’s largest supercomputer.”
Residents have criticized local officials for withholding information about data centers and approving permits despite community opposition. At xAI’s Boxtown facility, the Shelby County Health Department approved a permit in January 2025 for 15 methane gas turbines despite residents’ objections. The company later operated more than twice that number, while local officials took no action to enforce the permit limits.
The turbine violations are only part of the burden xAI places on the city’s infrastructure. Memphis Light, Gas, and Water (MLGW) agreed to provide xAI with up to one million gallons of water per day, while the company’s daily electricity use is equivalent to the power needed to serve more than 80,000 homes. xAI’s electricity bills totaled more than $50 million in 2025, according to a review of MLGW records.
Image: Memphis, TN residents oppose construction of new data centers at the August 18 city council meeting. Credit: The Worker.
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